((HT: Plain Dealer/Windhorst))
According to multiple sources within the Cavs, franchise majority owner Dan Gilbert has a tentative agreement in place to allow a group of Chinese investors to purchase a significant stake in the Cavaliers Operating Company, the entity that owns the Cavs and operates Quicken Loans Arena. The group is led by JianHua (Kenny) Huang, a Chinese businessman who has become successful by linking American and Chinese companies ((pictured, thanks Plain Dealer file)).
Huang and several of his partners were in Cleveland and attended Games 1 and 2 of the Eastern Conference finals this week. He sat in Gilbert's courtside box Friday night and watched LeBron James hit a buzzer-beating 3-pointer to even the series with the Orlando Magic at one game apiece.
"Dan Gilbert has been approached multiple times over the past few years by investors that wanted to join the Cavs' ownership group," said Len Komoroski, Cavs and Quicken Loans Arena president said in a statement.
"This has recently happened again. As has been done previously, we're in the process of reviewing the possibility presented to us. Beyond that, we do not feel it would be appropriate to give further comment at this time."
Calls to Huang's company were not returned.
The direct impact of the move is securing the future of the franchise, which has been in a minority ownership flux for the last couple years as it loses millions in attempting to build a championship-quality team around James. It will not only mean an injection of capital but will open the Cavs to business in China. The move, which has been kept mostly secret in America, is being supported by the NBA as they have encouraged development in China.
The other effect, which is surely the more interesting side to Cavs fans, is how vital this new link could be for James -- providing a huge tie-in with an economy James is eager to tap.
One of the immediate impacts of Chinese part-ownership of the Cavaliers would be a much more aggressive marketing of LeBron James to Asia -- which could conceivably make it more attractive for James to stay with the team when his contract expires in the summer of 2010.Any team ownership transfer of more than five percent must be voted on by the NBA's Board of Governors following background and financial checks.
If the deal comes to fruition and is approved by team owners, it could help to remarkably strengthen James' relationship with the Chinese fans and consumers that he's been working to reach for the last four years.
Huang, who has been working with the Cavs for the last two years in securing Chinese sponsorship through one of this companies, would represent a direct link between hundreds of millions of Chinese basketball fans and James. If the deal comes off, Chinese fans could start to feel a connection to James and it could expand his business interests by remaining with the Cavs past next season when his contract with the team expires.
In other words, there is great potential in being with a franchise that has a deep relationship to China -- likely even more so than just playing in the largest market in America. There has been intense speculation that James will be attracted to playing in New York because of the business opportunities.
"You have to think globally," James said recently of his business interests. "I have a lot of fans in China and they're important to me."
No comments:
Post a Comment